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    Controls For Differentiated Strategies

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    Cynthia Adianti
    The document discusses how control systems should be tailored to different corporate strategies and organizational structures. It notes that different strategies require different priorities, skills, and behaviors for effective execution. Thus, control systems should induce behaviors that are consistent with the chosen strategy. The document also outlines how organizational structure, size, culture, and management controls may differ depending on whether a company has a single industry focus, related diversified businesses, or unrelated diversified businesses.

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    Controls For Differentiated Strategies

    Uploaded by

    Cynthia Adianti
    5 views5 pages
    The document discusses how control systems should be tailored to different corporate strategies and organizational structures. It notes that different strategies require different priorities, skills, and behaviors for effective execution. Thus, control systems should induce behaviors that are consistent with the chosen strategy. The document also outlines how organizational structure, size, culture, and management controls may differ depending on whether a company has a single industry focus, related diversified businesses, or unrelated diversified businesses.

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    control for differential strategies - MCS - UGM

    Original Title

    6

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    The document discusses how control systems should be tailored to different corporate strategies and organizational structures. It notes that different strategies require different priorities, skills, and behaviors for effective execution. Thus, control systems should induce behaviors that are consistent with the chosen strategy. The document also outlines how organizational structure, size, culture, and management controls may differ depending on whether a company has a single industry focus, related diversified businesses, or unrelated diversified businesses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    5 views5 pages

    Controls For Differentiated Strategies

    Uploaded by

    Cynthia Adianti
    The document discusses how control systems should be tailored to different corporate strategies and organizational structures. It notes that different strategies require different priorities, skills, and behaviors for effective execution. Thus, control systems should induce behaviors that are consistent with the chosen strategy. The document also outlines how organizational structure, size, culture, and management controls may differ depending on whether a company has a single industry focus, related diversified businesses, or unrelated diversified businesses.

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    of 5

    Chapter 13

    CONTROLS FOR
    DIFFERENTIATED
    STRATEGIES
    Lingking Control to Strategy

    • Different organizations generally operate in


    different strategic control
    • Different strategies require different task priorities,
    KSF, skills, perspectives, and behavior for effective
    execution
    • Control systems are measurement systems that
    influence the behavior of the people whose
    activities are beeing measured
    • Thus, a continuing concern in the design of control
    systems should be whether the behavior induced
    by the system is consistent with the strategy.
    Different Corp. Stgs.: Org.
    Structure Implication
    Single Ind. Related Div. Unrelat. Div.

    Org. Struct. Functional BU Holding Co.

    Ind. Familiar High Low


    of CM
    Func. Backg Relevant Mainly
    of CM Oprt. Exprc. Finance
    DM More More de-
    authority centralized centralized
    Different Corp. Stgs.: Org.
    Structure Implication
    Single Ind. Related Div. Unrelat. Div.

    Size of Corp High Low


    Staff
    Reliance on High Low
    intnl promts
    Use of laterl High Low
    transfer
    Corporate Strong Weak
    culture
    Different Corp. Stgs.: Management
    Control Implication
    Single Ind. Related Div. Unrelat. Div.

    Strategic Vertical - Vertical only


    planning horizontal
    Control to Low High
    bgt formltn
    Importance Low High
    meetg bgt
    Importance High Low
    trfrs pricing

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